NEW YORK The ferrosilicon
market is slowly grinding to a halt as market participants
continue to await the outcome of a Nucor Corp. tender.
AMMs spot prices
eased slightly June 6 to a range of 91 to 93 cents per pound
from 92 to 94 cents previously, with the few reported
transactions taking place at lower levels and lower
Charlotte, N.C.-based Nucor was
recently reported to have submitted a "request for quote" for
ferrosilicon and silicomanganese.
One trader maintained that the
steel producer is holding ferrosilicon offers slightly below
current published prices (
amm.com, May 31).
"Its been almost two
weeks. I dont know what theyre doing," a second
trader said. "We put some numbers in on ferrosilicon, and they
havent given us anything; we put our numbers in on
silicomanganese, and they havent given us anything."
Nucor is reportedly seeking up
to 3,300 tons of silicomanganese in the third quarter for its
plants in Darlington, S.C., and Marion, Ohio (
amm.com, May 24).
The majority of traders
contacted by AMM this past week said the company had
yet to determine which quotes it would accept, although a third
trader said he heard the Darlington mill had awarded its tender
while the Marion tender was still under discussion.
Nucor couldnt be reached
All other ferroalloys were
unchanged, with high-carbon ferrochrome steady in a range of 99
cents to $1.02 per pound and ferrovanadium steady in a range of
$13 to $13.50 per pound.
There were also reports of a
tender for 1,500 tons of high-carbon ferromanganese from Delta,
Ohio-based North Star BlueScope Steel LLC, although sources at
the company couldnt be reached to confirm the
"That should be a good indicator
for how the third quarter will shake out," the third trader
Overall, market participants
reported ongoing slow trading activity as long-term contracts
cover the majority of consumer requirements.
"I havent bought a thing.
Ive got everything I need on my agreements and I
havent needed to go into the spot market," one consumer
"Nobody is in the market for
anything larger than truckloads these days," a fourth trader
"Ninety percent of our business
is booked for the year under contract, so theres very
little for us to go chase after," the third trader said.
"Unless steel production picks up a lot in the second half of
this year, therell be no reason for the mills to come
out. But steel production is at a respectable level, so
its not a disaster in terms of volume."